Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By: Shmuel Oluwa

Overview of this book

Financial modeling is a core skill required by anyone who wants to build a career in finance. Hands-On Financial Modeling with Microsoft Excel 2019 explores terminologies of financial modeling with the help of Excel. This book will provides you with an overview of the steps you should follow to build an integrated financial model. You will explore the design principles, functions, and techniques of building models in a practical manner. Starting with the key concepts of Excel, such as formulas and functions, you will learn about referencing frameworks and other advanced components for building financial models. Later chapters will help you understand your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. The book takes an intuitive approach to model testing and covers best practices and practical use cases. By the end of this book, you will have examined the data from various use cases, and have the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (15 chapters)
Free Chapter
Section 1: Financial Modeling - Overview
Section 2: The Use of Excel - Features and Functions for Financial Modeling
Section 3: Building an Integrated Financial Model

Understanding functions and formulas

In order to enter either a formula or a function, you must first type =. A formula is a statement that includes one or more operands (+, -, /, *, and ^), such as =34+7 or =A3-G5 (this formula subtracts the contents of cell G5 from the contents of cell A3). A function can also be included as part of a formula, such as =SUM(B3:B7)*A3.

A function is a command that contains a series of instructions for Excel to carry out. A function contains one or more arguments, inviting the user to specify the input cell or range of cells on which the instructions are to be carried out, for example, MATCH(A5, F4:F23,false).

A function can include a formula as part of an argument, such as =IF(A4*B4>C4,D4,E4).

However, the distinction between them is often ignored and the term formula is used to indicate either a formula or function.

To enter a formula, we...